Why Leaders Must Develop An Outward Mindset

The Outward Mindset

Develop the Outward Mindset

Your mindset is the key to your success, your happiness, and your ability to perform at exceptional levels. Your mindset is how you look at yourself and the world around you. An internal mindset is one blind to others, what they need, and how to create collective results.

Jim Ferrell, co-founder and Managing Partner of The Arbinger Institute is the author/co-author of multiple bestselling books, including Leadership and Self-Deception and The Anatomy of Peace. His latest book, co-authored with Mitchell Warner, is The Outward Mindset.

 

It’s as eye opening and important as his earlier work.

I recently spoke with Jim about his research on perspective and personal effectiveness. The ideas in this new book can improve performance, spark collaboration, and accelerate innovation.

 

“The secret to teamwork is an outward mindset.” –Steve Young

 

How to Change Lives and Transform Organizations

Would you introduce the concept of “The Outward Mindset”?

With an outward mindset, we see others as people like ourselves, whose goals, objectives, needs, and challenges matter to us. With an inward mindset, on the other hand, we see others as objects whose primary value to us depends on the extent to which we think they can help us with our own goals and objectives.

Our new book, The Outward Mindset, is about the key differences between these two mindsets and how to move to an outward mindset. The real-life stories in the book illustrate the dramatic difference in influence and results that individuals, teams, and organizations see as they shift to more of an outward-mindset orientation. The book details both how to personally make this shift and how to help others—individuals and whole organizations—to make it.

 

“Too many leaders assume that the role of leadership is to control.” –Jim Ferrell

 

Shift to the Outward Mindset

You share some powerful stories of shifting to an outward mindset. Are there “typical” difficulties and struggles in making this shift, especially if you found someone who was way off the scale on the inward side?

The biggest challenge is people linking their own mindset change to a change in others. When people have an inward mindset, they characteristically blame their struggles—and even their own mindsets—on others. They believe that they have to have an inward mindset in order to defend themselves against all the people around them who have an inward mindset. We demonstrate in the book how this belief is mistaken. We show that the most important move—both in organizations and in life generally— is for people to shift to an outward-mindset approach even when others around them persist in inwardness. This is a very powerful move, and the willingness to do it is one of the most important elements of transformational leadership.

As for someone being way off the scale on the inward side, most people are a mix of the two mindsets. Someone who is tyrannically inward in one part of their life, for example, may be quite different in other contexts. This means that people often are much closer to a change to an outward mindset than many people around them may believe.

 

“How much larger your life would be if your self could become smaller in it.” –GK Chesterton

 

The Incredible Results of an Outward Mindset

What results do you see after the shift has occurred?

Wow, it’s hard to know where to begin. At its most basic level, a change to an outward mindset transforms the health and vitality of relationships. It’s easy to see why this would be the case. When we are connected to others in an others-inclusive way—where we see others as people who matter like we ourselves matter—we tend to do much better with others (and they with us!) than when we are self-focused and see others as objects or tools to be used for our own purposes.

As a result of this transformational effect on relationships, one of the interesting things we often find in our work with organizations is that even the non-work relationships of the people we work with dramatically improve. I can’t tell you the number of times people have told us that our work has saved their marriages or healed the rifts in their relationships with their parents, siblings, or children.

For the same basic reason, a shift to an outward mindset in the workplace dramatically improves the abilities of teams, departments, and whole organizations to work productively together. These improvements show up in organizational climate, engagement surveys, customer satisfaction scores, and in the bottom line results of organizations.

Jim Ferrell

How does the outward mindset manifest itself in individual and team goals?

Although people generally aren’t aware of this, most organizational systems, incentives, and goals are inherently inward in nature. They invite people to focus on themselves and their own activities and levels of performance rather on the impact of their activities on others.

As a result, the move to an outward mindset often dramatically changes the objectives and metrics that people and organizations pursue and utilize. You can imagine, for example, how a person’s view of his own job responsibilities would change if he knew that he was responsible not only for certain outputs but also for the impact of those outputs (and the way he went about delivering them) on others.

When individuals and organizations get serious about moving to more of an outward-mindset approach, they start paying attention to and measuring their impact, not just their activities or outputs.

 

“All action results from thought, so it is thoughts that matter.” -Sai Baba

How to Achieve Execution Excellence

Balanced Scorecard

What’s the best way to drive individual performance?

How does a leader assure enterprise success?

Is it possible to close performance gaps to improve execution?

 

Making Strategy Work

In Execution Excellence: Making Strategy Work Using the Balanced Scorecard  Sanjiv Anand answers these and other questions.

Sanjiv Anand has 30 years of global experience in consulting, helping CEOs and boards develop transformational strategies. Currently the Chairman of Cedar Management Consulting International, his book is full of his operational and strategic insight on how to manage human capital. He is an expert on the Balanced Scorecard.

I recently asked Sanjiv to share some of his experience about what does and doesn’t work in implementing strategy.

 

“If you can’t execute the strategy, it’s not worth having.” –Sanjiv Anand

 

Why is strategy more relevant than ever before?

While the world continues to provide opportunities to grow, it is not without challenges. First, customer expectations around product, relationship, and brand have risen over years driven by extremely high levels of competitiveness. This has resulted in the need for firms to develop multiple strategies that address different customer segments. Additionally, competition is now local, regional, national, and global. This requires a more nuanced and complex competitive strategy. All of this also drives complexity in process and people. Global organizations or markets require processes to work well in a centralized and decentralized manner. Lastly organizations have become complex as even medium-sized enterprises can have employees across the world. All of this has made strategy, and more importantly the execution of strategy, more relevant than ever before.

 

“Strategy is about execution.” –Sanjiv Anand

 

What are the elements of a strategy that works?

Never build a strategy that can’t be executed. The problem starts there. Most organizations build strategies that are complex, difficult to understand, and hard to execute. A strategy that works needs to be balanced. It needs to focus on the drivers of financial performance rather than just the financial outcome. People and technology help drive process excellence. Process excellence helps meet or exceed customer expectations. And meeting customer expectations delivers financial performance. Therefore, all of these elements are critical for strategy that works—combined with a clear sense of ownership across the leadership team, a set of performance measures that are lead indicators to performance, and a set of targets that focus performance and don’t overwhelm. Focus, balance, ownership, measurement, and the right targets are the elements that make strategy work.

 

“Parallel processing is key to a successful strategy.” –Sanjiv Anand

 

Understand Cultural Differences

What are the cultural differences to be aware of in terms of measurement?

Execution Excellence by Sanjiv AnandIn the U.S., measurement motivates. In many parts of the world, measurement scares. Why? The U.S. has a culture that celebrates individual performance. This is also reflected in how organizations assess and reward people. Drive individual performance to drive enterprise performance is the typical formula; therefore, most executives in U.S. corporations are used to the idea of being measured and being held accountable individually.

Many parts of the world are different. In Japan it’s about team performance, and therefore team measurement is more important. In many parts of Asia, especially India, measurement is generally not part of the culture. Individual performance, or rather lack of it, is not something for public display or discussion. In Europe, the role of the corporation transcends the objective of only meeting shareholder expectations to also focusing on the greater good of society, so measurement of individual performance gets more complicated.

The broader point here is not to suggest that measurement should not be attempted, but the approach to measurement needs to be customized to motivate, not demotivate’ which is the objective in the first place.

 

“A positive strategy should focus on innovation.” –Sanjiv Anand

 

Don’t Make these Mistakes In Setting Targets

Is a Talent Assessment Missing From Your Strategy?

Talent Assessment
This is a guest post by friend and mentor Bruce Rhoades, who retired after having run several companies. He often helps me with strategy. I am delighted that he is a regular contributor.

 

Does your organization possess the skills necessary to successfully implement your strategic plan?

 

Strategic Planning Is Not Enough

Organizations invest a lot of time, talent and money in a strategic planning process. They carefully consider market segments, opportunities, trends and competition. Then they develop strategic initiatives and projects. They examine assets, products, pricing, costs, headcount, revenue projections and develop detailed 3 -5 year projections. Sometimes shareholder value and market value models are created.

 

“One often-overlooked aspect of a talent assessment is leadership.” –Bruce Rhoades

 

I have spent considerable time with organizations on strategy, planning and process as strategy officer, as interim CEO for several companies and as a consultant. I am surprised how often the entire process misses a key element of strategy:  a strategic talent assessment.

If the organization does not actually possess the key skills to execute the strategy, what skills are needed and how can they be obtained? No matter what process is used for strategy development, a strategic talent assessment is needed before “dropping the flag” on execution.

 

“A strategic talent assessment examines the skills needed to execute.” –Bruce Rhoades

 

What is a Talent Assessment?

Simply stated, a strategic talent assessment examines the organizational skills needed to execute the strategy. It should include:

  • Necessary skills to assess the market needs, attractiveness, competition and size
  • The know-how to define, plan and price the product
  • Type of talent to actually develop the product
  • Competence needed to market, sell and deliver the product
  • Skills to provide customer readiness and adoption
  • Expertise needed to provide service to customers for products
  • Leadership talent to actually execute and deliver the strategic initiative
  • Certain cultural elements of the organization: decisiveness, accountability, delegation, results, etc.

 

“If the necessary talent is not present, the strategy is flawed.” –Bruce Rhoades

 

Performing a Talent Assessment

Ideally, the assessment should be performed when key strategic initiatives are identified. It is especially important to assure that the talent is available to assess the market and opportunity at the next level of detail before committing major resources.

The assessment should be performed at a sufficient level of detail to enable successful execution. Avoid a tendency to categorize talent at high, abstract levels. A good test for the level of detail is to imagine that you are trying to hire a person with these skills — how would you identify that the person possesses the skills? For example, do not just indicate “technology skills” but specify the exact technology skills. Likewise, do not indicate “sales” but what type of sales skills – consumer, consultative, B2B, etc.

One often-overlooked aspect of a talent assessment is leadership. Even if all the necessary talent resides in the organization, execution will fail if leadership is absent. We have all seen a sports team with an abundance of individual talent but with no leadership to get the talented individuals to perform and deliver as a team.

 

“Even if the necessary talent is present, execution fails without leadership.” –Bruce Rhoades

 

The result of the talent assessment should be a “skills gap” matrix that lists the skills currently resident in the organization and the skills needed to execute the strategy. They can even be ranked critical, important, necessary, etc. The “skills gap” matrix should be used as a guide to acquire the necessary talent.

One gap that often occurs in current strategies is when organizations want to utilize “big data analytics” in products, marketing or sales but actually have no resident skills in analytics, statistics, large database technology or modeling.

Another example is when organizations want to capitalize on “social media” but have scarce skills in the organization that actually understand how to best use social media to reach their goals.

 

“Execution before the proper skills are in place can waste resources and damage credibility.” –Bruce Rhoades 

 

How to Remedy the Strategic Talent Gap

Make A Decision To Win

Fast Forward Winner

He’s an Emmy Award winning broadcaster, a motivational speaker, and the author of Fast Forward Winner. He’s also the voice of the Atlanta Hawks. His whole professional life has been spent watching teams compete.

Who better than to ask about winning teams, about team leadership, and about winning?

 

“Every day your work is your performance review.” –Bob Rathbun

 

Bob Rathbun started broadcasting at 12. His first opportunity at the microphone started with him calling a homerun at the bottom of the seventh inning. Since that first call, Bob has crisscrossed the country, won numerous awards, and risen to the top of his profession.

And yet he humbly says that, if he could do it, you can, too. Bob wants everyone from corporate leaders to the youth groups he encourages to learn from his journey and find success.

 

“Make the decision to be at your best so you can give those around you your best.” –Bob Rathbun

 

Go For Your Dreams

In his book, Fast Forward Winner, and in his public appearances, Bob is always encouraging others to go for their dreams.

“It’s ok to dream. Ok to put yourself out there and see where it can take you.”

If you don’t dream about it, think about it, put yourself out there and ask some people for help, you never know what may be out there for you.

What’s the #1 lesson for those aspiring to go to the top? Bob’s answer: Belief.

How many of us give up because we don’t believe in ourselves enough?

 

“When you make a decision, be ready for what comes with it.” –Bob Rathbun

 

Formula for a Winning Team

Bob has seen teams fall apart and seen teams win championship games. His formula for success is:

Talent + Lockstep Thought, Spirit, and Execution

How to Lead Like a Navy SEAL

How to Lead Like a Navy SEAL

Navy SEAL

When you read those two words, what comes to mind?

Words like: tough, decisive, driven, fearless, disciplined?

What can leaders learn from the SEALS?

 

Under incredible conditions, Navy SEALS prove their worth by getting the job done. When I meet a SEAL, I am intrigued because I know this is someone who is proven. Recently, when I had the opportunity to interview Brian “Iron Ed” Hiner, about his new book, First, Fast, Fearless: How to Lead Like a Navy SEAL, I knew I would walk away with many lessons I could apply in business and in life.

 

“When leadership is right, you really don’t see it any more.” -Ed Hiner

 

HIRING LESSONS FROM THE SEALS

Becoming a NAVY SEAL means you have overcome all odds. What can corporate leaders learn from the selection process in terms of hiring and recruiting the very best team possible?

Navy Seal Ed HinerWe have identified four major traits that we look for in a perspective SEAL candidate: physical courage, moral courage, problem solving, and what I call “teamability.” Physical courage is obvious, but moral courage does not rank far behind because we are an organization that relies heavily on trust and for our people to do the right thing for our country.

We also want SEALs to be problem solvers who thrive in what we call VUCA (Volatility, Uncertainty, Complexity and Ambiguity), an environment often referred to as the “fog of war.” In our Gallop polling, we discovered that chess players are almost four times more likely than non-chess players to successfully make it through Navy SEAL training; chess players are problem solvers, and the board is VUCA writ small.

The last trait that I call “teamability” is a person’s ability to lead and be led, who can move from team to team seamlessly.

 

The 4 Must-Have Traits of a SEAL

1: Physical courage.

2: Moral courage.

3: Problem solving.

4: Teamability.

 

The takeaway of this is that hiring and recruiting needs be very deliberate. Organizations that understand the critical traits they need in their employees, and actively recruit for these traits, will be more successful down the road. Obviously all organizations look for skills and experience, but oftentimes they overlook the fundamental traits they actually need to be the elite organization that they wish to be.

 

“Leadership is something you do with people, not to them.” -Ed Hiner

 

PUT MISSION BEFORE SELF

Could you cover teamability a little more and what that means? What methods do you employ to get people to put “mission before me.”

Teamability requires that leaders and team members put mission and team before their own personal interests. When people know that leaders are selflessly making decisions for the team to succeed, and protecting their people along the way, it sets the conditions for teamability. From the beginning of SEALs training we set conditions to reinforce this concept.

In some ways it’s like we turn the pyramid upside down and take care of the broader team mission first and work our way down to the individual. For example, after we finish a mission, we take care of the teams’ common gear first. Then we all split off to our smaller teams and take care of that gear and issues until we get to the individual. This applies to everyone on the team, rank doesn’t matter; the motto is mission before me. This applies everywhere in the SEAL Teams. During staff meetings SEAL Team issues get addressed first, then the smaller Task Unit issues and so forth. It’s a practiced ritual that develops teamability and mission focus. As for the leaders of team, the rank of importance is the Mission, the men and then me. When it’s time to shower and eat, leaders eat last.

When organizations depend on teamwork it’s critical for them to reward the teams that exhibit this trait. In the SEAL Teams your performance review is heavily skewed toward your teamability; we don’t just give it lip service. We reward the traits that we want, to be the elite organization that we need to be. It’s very easy to fall into the trap of just rewarding individual performance at the expense of critical traits that you need for overall mission success.

 

“Servant leadership means that the team is not about you.” -Ed Hiner

 

THE IMPORTANCE OF HUMILITY

You say, “The biggest enemy of humility is our own ego, which is molded by our fears.” Talk about that interplay between fear and ego.IMG_0089

We are an organization of “Alpha males” and high performers, and it’s easy for individuals in any organization with high performers to fall in love with their own ideas and abilities. Elite teams perform at their best when their leaders are humble. It’s an outward indicator that the leader is willing not to fall in love with his or her own ideas but is instead willing to find the best direction for the mission and the team. When leaders are humble and act selflessly it builds trust, and trust is the invisible thread that holds all elite teams together. When this invisible thread is broken and leaders act in their own self-interest, and don’t engage the skills and talents of the team, results will suffer.

We all have fears, and those fears can contribute to shaping our personalities: fear of failure, not being intelligent, shame, etc. Humility is the antidote to those fears. Elite leaders are not worried about being right; they are focused on the cause-and-effect relationship to get results and accomplish the mission.

I’m not saying that people should completely get rid of their egos so that they dance naked in the halls; I’m saying divorce your ego, yet stay friends. Don’t let your ego run your life. As the saying goes, “Humble people don’t think less of themselves, they think of themselves less.”

 

“Be the cause, not the effect.” -Ed Hiner

 

What qualities do you first notice when someone is leading with humility and acting as a servant leader?